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settlements are not deductible as alimony.”5 Petitioner timely
filed a petition to this Court seeking a redetermination.
Discussion
The parties dispute the proper characterization of
petitioner’s $50,000 payment to Ms. Springer in 1996. Respondent
determined that the $50,000 payment was not deductible by
petitioner because it was in the nature of a property settlement
payment. Petitioner claims the payment is deductible as alimony
under section 215(a). The parties’ respective positions are
based on contrary interpretations of the divorce documents and
applicable Nebraska law.
Generally, the Commissioner’s determination bears a
presumption of correctness, and the burden of proof rests with
the taxpayer. Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115
(1933). The fact that a case is submitted fully stipulated does
not alter the burden of proof, or the requirements otherwise
applicable with respect to adducing proof, or the effect of
failure of proof. Rule 122(b); Kitch v. Commissioner, 104 T.C.
1, 5 (1995), affd. 103 F.3d 104 (10th Cir. 1996).
5Respondent also decreased petitioner’s total itemized
deductions by $1,500. This was a computational adjustment based
on the increase in petitioner’s adjusted gross income that
resulted from respondent’s disallowance of $50,000 of the claimed
deduction for alimony paid. No other adjustments were made to
petitioner’s 1996 return.
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